FAQ — PROVEN

What does PROVEN do?

PROVEN is a financial reconstruction and verification engine. We reconstruct the income statement and statement of cash flows directly from source documents, and compare the result to what management has reported.

Who is this for?

Private equity funds, venture capital firms, and private credit lenders. We built PROVEN for investment professionals who need to verify portfolio-company financials independently — pre-investment during diligence, and post-investment during monitoring.

What question does PROVEN answer?

One question, precisely. What actually happened in cash reality? PROVEN does not model what should have happened, or what management says happened. It reconstructs what did happen, from source evidence.

The core idea

PROVEN does not model reality. It proves it — every figure is reconstructed from source transactions and traced back to a specific document, counterparty, and timestamp.

Is PROVEN an audit?

No. An audit tests a sample of transactions once a year and attests to GAAP or IFRS compliance. PROVEN reconstructs financial statements from source evidence on a monthly cadence and is not an attestation service. We operate alongside the audit process — not in place of it.

Is PROVEN a Quality of Earnings provider?

No. QoE reports are transactional — produced once, typically during diligence, by an accounting firm. PROVEN produces continuous, source-reconstructed financial output throughout the investment lifecycle. A QoE report is a point-in-time snapshot; PROVEN is an ongoing verification layer.

Is PROVEN a replacement for internal financial diligence?

No. PROVEN is a tool used by diligence and monitoring teams. It replaces the weakest link in the existing process — unverified management-reported financials — not the judgment of the professionals doing the work.

Is PROVEN a general ledger or accounting system?

No. PROVEN sits above the general ledger and validates it. An accounting system, an accounting team, and an audit process all remain necessary. PROVEN is an independent evidence and analysis layer — not a system of record.

Does PROVEN produce GAAP or IFRS financials?

No. PROVEN does not produce audited financials or attest to accounting policy compliance. The output is a source-reconstructed view of cash reality, designed to be used alongside GAAP or IFRS reporting — not as a substitute for it.

Does PROVEN capture the full balance sheet?

No. PROVEN reconstructs the P&L and the cash flow statement. The balance sheet is outside our scope — accounts receivable, accounts payable, inventory, fixed assets, intangibles, and deferred or accrued items are not captured. This is deliberate. PROVEN focuses on the financial statements where source evidence and management reporting most frequently diverge.

What does the output look like?

A reconstructed P&L and cash flow statement, reconciled line-by-line against management-reported figures. Variances are surfaced, classified, and documented. The output is built to be presented to investment committees, credit committees, and auditors.

Where is PROVEN strongest?

The cash flow statement. Cash cannot be easily faked. Because PROVEN reconstructs directly from source evidence, the cash flow output is the most reliable element of what we produce — and frequently the most decisive in early-stage or complex situations where reported earnings can mislead.

When are supplementary tools needed?

Three specific cases. GAAP or IFRS financial reporting still requires the accounting team, general ledger, and audit process. Valuation analysis requires market comparables, DCF models, and fair value inputs. Full working capital analysis requires AR, AP, and inventory data. PROVEN is deliberately scoped to what can be verified from source cash evidence.

What stage is PROVEN at today?

PROVEN is a new company, currently founder-led, with a founding team and advisory board in formation. We are in active conversations with prospective pilot partners — PE, VC, and private credit funds who share the thesis and want to help shape the institutional standard for source-verified financials.

Do you have current clients?

Not yet. We are pre-commercial and deliberately working with a small number of pilot partners before broader market engagement. We view this as an advantage — it allows us to build PROVEN with institutional input from day one, rather than retrofitting enterprise requirements later.

What does an early engagement look like?

We work with pilot partners on a focused use case — a single portfolio company, a specific deal under diligence, or a limited monitoring engagement. This gives both sides a real proof point without requiring a large commitment. Engagements are governed by an NDA and a mutually agreed scope.

Who owns the data we send you?

You do. PROVEN operates as a data processor, not a data controller. The client is always the data controller. Our engagements are governed by a Data Processing Agreement that confirms client ownership of all financial data and defines PROVEN access as read-only and revocable.

How is data protected?

PROVEN is built on institutional-grade cloud infrastructure with encryption in transit and at rest, tenant isolation, and full access logging. Our security posture is designed to meet the standards of SOC 2 Type II, ISO 27001, and GDPR — certifications we are actively pursuing on a timeline aligned with first commercial engagements.

Can you provide a full security package under NDA?

Yes. For engagements in active discussion, we can provide a complete security and architecture overview under NDA, including our infrastructure documentation, data-handling practices, and sub-processor list. Contact us directly to initiate this review.

Frequently asked questions

The core question PROVEN answers